Asian markets mixed as U.S.-China trade tensions rear up again

Asian stock markets were mixed in early trading Tuesday, after Wall Street’s steep reversal following a report that the U.S. may impose more tariffs against Chinese goods.

Japanese stocks were higher amid gains in financials following solid earnings results which helped offset losses in energy stocks. The Nikkei

NIK, +1.30%

  was last up 0.8%. Banks led gains after the Treasury yield went higher overnight, with Mitsubishi UFJ Financial Group

8306, +2.19%

  up 1.4%. Equipment manufacturer Komatsu

6301, +6.04%

  gained 4.4% following a full-year guidance upgrade. Meanwhile, oil explorer Inpex

1605, -3.21%

  fell 2.4% after crude prices fell overnight.

Hong Kong stocks fell after yesterday’s brief respite as talk of tariffs weighed on Chinese stocks listed in the city. The Hang Seng Index

HSI, -0.06%

  was down 0.9%, risking undoing all of Monday’s gains if losses carry through to the end of trade. The U.S. is preparing to extend tariffs on all remaining Chinese imports by early December if talks between Donald Trump and Xi Jinping fail, according to a Bloomberg report on Monday, citing unnamed sources. Leading declines on the benchmark with a 5.3% drop was BOC Hong Kong

2388, -5.37%

 , following disappointing third-quarter earnings.

China’s Shanghai Composite

SHCOMP, +1.37%

  slipped again after the previous day’s tumble, and the Shenzhen Composite

399106, +1.34%

  lost 1.3%. Liquor stocks continued to head south on weak results, with Kweichow Moutai

600519, -2.88%

  sliding 5.8%, dragging major consumer names along. But Ping An Insurance

601318, +3.15%

 , buoyed by its record share buyback plan, reversed an opening drop.

South Korea’s Kospi

SEU, +1.48%

  edged up 0.2%, led by gains by chip making giants Samsung

005930, +3.38%

  and SK Hynix

000660, +3.89%

  after Chinese chip company Fujian Jinhua Integrated Circuit Co. was slapped with export restrictions by the U.S.

Benchmarks in Australia

XJO, +1.34%

  and New Zealand

NZ50GR, +0.38%

  were about flat, while Singapore’s Strait Times Index

STI, -0.39%

  fell and Taiwan’s Taiex

Y9999, +0.10%

  rose slightly.

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